What's the best way to create a product mix for your target market?

2 Analyze your competitors

The next step is to analyze your competitors and their product mixes. You can use tools like SWOT analysis, competitor matrix, or benchmarking to compare your strengths, weaknesses, opportunities, and threats with those of your rivals. You should look at their product range, variety, quality, features, benefits, prices, and positioning. For example, you might want to know how many products they offer, how they differentiate them, how they price them, and how they appeal to their target markets.

3 Define your product mix objectives

The third step is to define your product mix objectives and how they align with your overall business goals and strategy. You should consider what you want to achieve with your product mix, such as increasing customer satisfaction, loyalty, retention, or referrals; expanding your market share, reach, or penetration; enhancing your brand image, reputation, or awareness; or improving your revenue, margin, or profitability. For example, you might want to offer a product mix that solves your customers' problems, meets their expectations, and delivers value for money.

4 Design your product mix strategy

The fourth step is to design your product mix strategy and how you will implement it. You should consider the four dimensions of product mix: width, length, depth, and consistency. Width refers to the number of product lines or categories that you offer; length refers to the number of products within each line or category; depth refers to the number of variants or options for each product; and consistency refers to how related or complementary your products are. For example, you might want to offer a wide, long, deep, and consistent product mix that covers all your customers' needs and wants.

5 Evaluate your product mix performance

The fifth step is to evaluate your product mix performance and how you will measure it. You should use various metrics and indicators to assess how well your product mix is performing in terms of customer satisfaction, loyalty, retention, or referrals; market share, reach, or penetration; brand image, reputation, or awareness; or revenue, margin, or profitability. You should also collect feedback from your customers, employees, suppliers, and partners to identify any gaps, issues, or opportunities for improvement. For example, you might want to use sales data, customer reviews, market research, or surveys to evaluate your product mix performance.

6 Adjust your product mix as needed

The final step is to adjust your product mix as needed and how you will communicate it. You should monitor the external and internal factors that affect your product mix, such as customer preferences, competitor actions, market trends, technological changes, or regulatory requirements. You should also review your product mix objectives, strategy, and performance regularly and make any necessary changes to keep your product mix relevant, competitive, and profitable. For example, you might want to add, delete, modify, or reposition your products to adapt to changing customer needs and market conditions.